MEC for local government and traditional affairs Mlibo Qoboshiyane handed a preliminary investigation report on corruption to the Kouga municipal council on Monday.
In February last year Gobodo Inc, a firm of auditors, was contracted to conduct investigations on various allegations received from the ratepayers associations of Kouga local municipality.
Kouga comprised of Jeffrey's Bay and Humansdorp. Allegations investigated included tender irregularities and irregular expenditure in the appointment of the Kouga Consortium of Valuators to conduct municipal valuations of properties.
Qoboshiyane said the municipality had failed to discipline the former chief financial officer (CFO), Ridwaan Abdullah, for his "purported involvement in the awarding of a contract for the installation of prepaid meters to a family member and his alleged failure to declare his interest when chairing the bid evaluation committee."
Also alleged was the "sale of vacant council land to the CFO for R17500 when the land was valued at R175000 and the awarding of the Ocean View community centre tender to a friend of the CFO when there were more responsive bidders."
Qoboshiyane has requested a written response on how Kouga will respond to the allegations contained in the preliminary report.
"The department is committed to the 2014 target of a clean audit, and any deviation from that goal can never be condoned.
"The auditor-general expects all municipalities to commit to a clean audit, and the department wants nothing less."
He said the present administration in Kouga could never condone any form of irregularity as this bordered on corrupt activity and misappropriation of public funds, thus robbing poor communities and deserving citizens of the country.
During his visit to Eastern Cape municipalities last week, auditor-general Terence Nombembe said for the provincial municipalities to achieve clean audits, they needed clean administration.
Nombembe said no municipality in the province had ever achieved a clean audit.